Naval Ravikant | The Reason Why CEOs are paid so much - And What You can Copy from Them
Naval Ravikant explains why CEOs are paid so much money. In some cases, they get paid hundreds of millions of dollars. According to Naval, it all boils down to 2 core concepts: Slightly better judgement/capability + Huge Leverage.
Enjoy!
π Naval Ravikant
π² How to Get Rich (podcast)
βΊ https://www.youtube.com/watch?v=1-TZqOsVCNM&t=859s&ab_channel=Naval
π Books
π The Almanack of Naval Ravikant, by Eric Jorgenson.
βΊ Free - https://www.navalmanack.com/
βΊ Amazon Store (affiliate Link - No Extra Charge) - https://amzn.to/3qNAKBc
βοΈ βοΈ Source βοΈ βοΈ
https://www.youtube.com/watch?v=PEGTfXngUWg&t=1575s&ab_channel=BrainOnFire
πππ The 8 Books to Learn How to Invest (List made by SuperInvestor Mohnish Pabrai) πππππ
π The 1957 β 1970 Buffett Partnership Letters
βΊ Free - http://csinvesting.org/wp-content/uploads/2012/05/complete_buffett_partnership_letters-1957-70_in-sections.pdf
π The Berkshire Hathaway Shareholder Letters
βΊ Free - https://www.berkshirehathaway.com/letters/letters.html
βΊ Amazon Store (affiliate Link - No Extra Charge) - https://amzn.to/3ESbfSU
π Buffett: The Making of an American Capitalist, by Roger Lowenstein.
βΊ Amazon Store (affiliate link - No Extra Charge) - https://amzn.to/3mRiWCN
π The Snowball: Warren Buffett and the Business of Life, by Alice Schroeder.
βΊ Amazon Store (affiliate link - No Extra Charge) - https://amzn.to/2Ynf0Ad
π Poor Charlieβs Almanack: The Wit and Wisdom of Charles T. Munger, Expanded.
βΊ Amazon Store (affiliate link - No Extra Charge) - https://amzn.to/3kxgrEj
π The Dhandho Investor: The Low-Risk Value Method to High Returns, by Mohnish Pabrai.
βΊ Amazon Store (affiliate link - No Extra Charge) - https://amzn.to/3GWLgvz
π How to Get Rich: One of the Worldβs Greatest Entrepreneurs Shares His Secrets, by Felix Dennis. βΊ Amazon Store (affiliate link - No Extra Charge) - https://amzn.to/3bPg4jE
π The Origin and Evolution of New Businesses, by Amar Bhide.
βΊ Amazon Store (affiliate link - No Extra Charge) - https://amzn.to/3EQseF9
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- CEO's are paid for their judgement
- CEO's have huge leverage in their decisions (e.g./ Labor, Capital)
- Small better Judgement-Capability * Huge Leverage (labor, capital) = Huge Impact on the Business Performance
- Leverage magnifies everything.
- Do what you Love so you Become the best at what you do (thus, you develop the best judgement) + use Leverage -- Make a Huge Impact !
The 3 Kinds of Leverage:
β’ Labor -- People that follow you (e.g./ Employees of your business)
β’ Capital -- Money you can allocate (e.g./ Investment Ventures)
β’ Products with no marginal cost of replication -- Code (e.g./ develop an app) & Media (e.g./ create a youtube channel)
β’ * This is permissionless! -- That's why we are in the age of Leverage!
- No one can compete with you on being you!
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